COINOTAG reports, referencing Coinglass data on August 23, that while Ethereum reached a fresh intraday high, prevailing centralized exchange (CEX) ETH funding rates held broadly neutral across major venues, indicating balanced long‑short positioning among traders.
The funding rate is a periodic fee applied to perpetual contracts designed to tether derivative prices to the underlying spot market; it functions as a transfer between long and short counterparties rather than a platform revenue stream, and is monitored by market participants to gauge leverage flows.
Market observers commonly treat a funding rate of 0.01% as a baseline; readings above 0.01% suggest a net bullish bias, whereas levels below 0.005% are interpreted as signaling a generally bearish stance in the ETH derivatives market.